Kingston Resources on-track to complete Misima Gold Project PFS next quarter

Kingston Resources Ltd (ASX:KSN) is moving rapidly towards completing a pre-feasibility study (PFS) for its flagship Misima Gold Project in Papua New Guinea in the next quarter. The PFS is advancing on schedule and has achieved 60% design completion with process plant design complete while engineering and cost estimation is progressing. Historical operating data, metallurgical test-work and geotechnical plans have provided considerable cost and time advantages to the PFS and significantly de-risk future development. An ore reserve is also expected to be delivered by the end of the year, subject to the results of the PFS. Benefitting from historical data Kingston managing director Andrew Corbett said: “The Kingston team is making excellent progress on the Misima Gold Project PFS. “We are fortunate to be able to benefit from the extensive historical datasets we have available, which provide a meaningful technical de-risking of the proposed project development. “Focusing on the previously-mined Umuna and Ewatinona open pits allows us to benefit from the well-understood mining, milling and geotechnical characteristics of these ore bodies, while also enabling us to leverage off previous mining access which remains in place. “ Processing plant Misima is anticipated to host a standard Carbon in Leach (CIL) processing plant based on a similar design and capacity as the plant operated by previous owner Placer Pacific for 15 years. Kingston’s approach to the PFS has been to focus on replicating the previous owner’s highly successful operation at Misima, which produced 3.7 million ounces of gold over 15 years at very low operating cost. This is expected to significantly reduce the capital cost of construction through anticipated reductions in earthworks, while also de-risking geotechnical exposure. Reserve estimate upcoming Following a large increase in the JORC resource estimate earlier this year to 105 million tonnes at 0.93 g/t for 3.21 million ounces, Kingston immediately started work on the PFS with the appointment of key consultants in early July. The resource estimate includes an indicated component of 1.52 million ounces, of which more than 90% sits within a US$1,400 per ounce pit shell. These indicated ounces, once optimised for open pit extraction, will be available for potential conversion to ore reserves. The open-pit mine optimisation and scheduling work have substantially progressed, with final optimisations being completed as market-tested cost data is sourced. “Clear roadmap” Corbett added: “We are on track to deliver the Misima PFS in the December 2020 quarter, together with an open-pit ore reserve, providing a clear roadmap for Kingston to progress towards the development of a significant new gold mine in the Asia-Pacific.”